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U.S. Company pulls out of Ring of Fire project

First Published:

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The provincial Tories say Kathleen Wynne’s Liberals have blown a $10 billion deal of a lifetime. They’re accusing the provincial government of killing development of the “Ring of Fire” by failing to stop a major player from pulling out of the project. The “Ring of Fire” is a mineral rich area about 500 kilometres north of Thunder Bay. Experts say the area contains enough “chromite” to meet North America’s needs for two centuries. Chromite is used in the production of stainless steel and coatings that protect auto parts appliances and other products. Experts say the area is worth an estimated $60 billion. But now U.S. based Cliffs Natural Resources says it won’t spend any more money on the project and is suspending operations indefinitely. The company is blaming an uncertain timeline and risks with the development of necessary infrastructure.

Vic Fedeli is the Ontario PC Finance Critic: “Cliffs has just finally said a month ago, if you don’t have a transportation plan you don’t have activity. And here we are, another month has gone by and there’s no plan, no idea that a plan is coming and they’ve left and we can’t be surprised at that.”

Andrea Horwath is the Ontario NDP Leader: “Their bungling has snuffed out an amazing opportunity for Northeners and Ontarians overall. And in terms of jobs and resource development, it’s shameful that end up here today with Cliffs pulling out of the province.”

Liberal Northern Development and Mines Minister, Michael Gravelle, says he’s disappointed, but will continue to work to develop the Ring of Fire. He says the development is about more than one company. Earlier this month, Premier Wynne was talking about the need to spend $2.25 billion on the “Ring of Fire”, calling on federal government to help pick up the tab. More than half of the cash would cover building all season roads to the isolated area. And the other half for infrastructure.

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